CMS Energy Announces Second Quarter Results, Reaffirms 2024 Adjusted EPS Guidance

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Jul 25, 2024, 06:30 ET

JACKSON, Mich., July 25, 2024 /PRNewswire/ -- CMS Energy announced today reported earnings per share of $0.65 for the second quarter of 2024, compared to $0.67 per share for 2023. The company's adjusted earnings per share for the second quarter were $0.66, compared to $0.75 per share for the same quarter in 2023. For the first six months of the year, the company reported $1.61 per share compared to $1.36 per share for the same timeframe in 2023. On an adjusted earnings per share basis year to date, the company reported $1.63 per share in 2024, compared to $1.45 per share in 2023, primarily due to constructive regulatory outcomes and higher weather normalized sales.

CMS Energy reaffirmed its 2024 adjusted earnings guidance of $3.29 to $3.35 per share (*See below for important information about non-GAAP measures) and long-term adjusted EPS growth of 6 to 8 percent, with continued confidence toward the high end.

"We are on track to deliver our full year earnings guidance after a strong first half of the year prioritizing investments in our electric and gas systems to deliver value for customers," said Garrick Rochow, President and CEO of CMS Energy and Consumers Energy. "Our electric Reliability Roadmap, Natural Gas Delivery Plan and Clean Energy Plan will allow us to harden and improve our systems while leading the clean energy transformation."

CMS Energy (NYSE: CMS) is a Michigan-based energy provider featuring Consumers Energy as its primary business. It also owns and operates independent power generation businesses.

CMS Energy will hold a webcast to discuss its 2024 second quarter results and provide a business and financial outlook on Thursday, July 25 at 9:30 a.m. (EDT). To participate in the webcast, go to CMS Energy's homepage (cmsenergy.com) and select "Events and Presentations."

Important information for investors about non-GAAP measures and other disclosures.

This news release contains non-Generally Accepted Accounting Principles (non-GAAP) measures, such as adjusted earnings. All references to net income refer to net income available to common stockholders and references to earnings per share are on a diluted basis. Adjustments could include items such as discontinued operations, asset sales, impairments, restructuring costs, business optimization initiative, changes in accounting principles, voluntary separation program, changes in federal tax policy, regulatory items from prior years, unrealized gains or losses from mark-to-market adjustments, or other items. Management views adjusted earnings as a key measure of the company's present operating financial performance and uses adjusted earnings for external communications with analysts and investors. Internally, the company uses adjusted earnings to measure and assess performance. Because the company is not able to estimate the impact of specific line items, which have the potential to significantly impact, favorably or unfavorably, the company's reported earnings in future periods, the company is not providing reported earnings guidance nor is it providing a reconciliation for the comparable future period earnings. The company's adjusted earnings should be considered supplemental information to assist in understanding our business results, rather than as a substitute for the reported earnings.  

This news release contains "forward-looking statements." The forward-looking statements are subject to risks and uncertainties that could cause CMS Energy's and Consumers Energy's results to differ materially. All forward-looking statements should be considered in the context of the risk and other factors detailed from time to time in CMS Energy's and Consumers Energy's Securities and Exchange Commission filings.

Investors and others should note that CMS Energy routinely posts important information on its website and considers the Investor Relations section, www.cmsenergy.com/investor-relations, a channel of distribution.

CMS ENERGY CORPORATION Consolidated Statements of Income (Unaudited)

	*In Millions, Except Per Share Amounts*
	Three Months Ended				Six Months Ended
	6/30/24		6/30/23		6/30/24		6/30/23

Operating revenue	$	1,607	$	1,555	$	3,783	$	3,839

Operating expenses		1,324		1,311		3,088		3,281

Operating Income		283		244		695		558

Other income		113		146		199		202

Interest charges		173		160		350		307

Income Before Income Taxes		223		230		544		453

Income tax expense		41		41		99		70

Income From Continuing Operations		182		189		445		383

Income from discontinued operations, net of tax		-		1		-		1

Net Income		182		190		445		384

Loss attributable to noncontrolling interests		(16)		(8)		(40)		(18)

Net Income Attributable to CMS Energy		198		198		485		402

Preferred stock dividends		3		3		5		5

Net Income Available to Common Stockholders	$	195	$	195	$	480	$	397

Diluted Earnings Per Average Common Share	$	0.65	$	0.67	$	1.61	$	1.36

CMS ENERGY CORPORATION Summarized Consolidated Balance Sheets (Unaudited)

	*In Millions*
	As of
	6/30/24			12/31/23
Assets
Current assets
Cash and cash equivalents		$	699		$	227
Restricted cash and cash equivalents			90			21
Other current assets			2,196			2,591
Total current assets			2,985			2,839
Non-current assets
Plant, property, and equipment			25,877			25,072
Other non-current assets			5,493			5,606
Total Assets		$	34,355		$	33,517

Liabilities and Equity
Current liabilities ⁽¹⁾		$	1,756		$	1,822
Non-current liabilities ⁽¹⁾			8,290			7,927
Capitalization
Debt and finance leases (excluding securitization debt) ⁽²⁾			14,996			14,856
Preferred stock and securities			224			224
Noncontrolling interests			538			581
Common stockholders' equity			7,779			7,320
Total capitalization (excluding securitization debt)			23,537			22,981
Securitization debt ⁽²⁾			772			787
Total Liabilities and Equity		$	34,355		$	33,517

⁽¹⁾Excludes debt and finance leases.

⁽²⁾Includes current and non-current portions.

CMS ENERGY CORPORATION
Summarized Consolidated Statements of Cash Flows
(Unaudited)

	*In Millions*
	Six Months Ended
	6/30/24			6/30/23

Beginning of Period Cash and Cash Equivalents, Including Restricted Amounts		$	248		$	182

Net cash provided by operating activities			1,663			1,705
Net cash used in investing activities			(1,246)			(2,079)
Cash flows from operating and investing activities			417			(374)
Net cash provided by financing activities			124			598

Total Cash Flows		$	541		$	224

End of Period Cash and Cash Equivalents, Including Restricted Amounts		$	789		$	406

CMS ENERGY CORPORATION Reconciliation of GAAP Net Income to Non-GAAP Adjusted Net Income (Unaudited)

	*In Millions, Except Per Share Amounts*
	Three Months Ended				Six Months Ended
	6/30/24		6/30/23		6/30/24		6/30/23

Net Income Available to Common Stockholders	$	195	$	195	$	480	$	397
Reconciling items:
Disposal of discontinued operations (gain) loss		-		(1)		-		(1)
Tax impact		-		*		-		*
Other exclusions from adjusted earnings**		2		2		6		5
Tax impact		(*)		(*)		(1)		(1)
Voluntary separation program		-		28		*		28
Tax impact		-		(7)		(*)		(7)

Adjusted net income – non-GAAP	$	197	$	217	$	485	$	421

Average Common Shares Outstanding - Diluted		298.5		291.3		297.9		291.2

Diluted Earnings Per Average Common Share
Reported net income per share	$	0.65	$	0.67	$	1.61	$	1.36
Reconciling items:
Disposal of discontinued operations (gain) loss		-		(*)		-		(*)
Tax impact		-		*		-		*
Other exclusions from adjusted earnings**		0.01		0.01		0.02		0.02
Tax impact		(*)		(*)		(*)		(*)
Voluntary separation program		-		0.09		*		0.09
Tax impact		-		(0.02)		(*)		(0.02)

Adjusted net income per share – non-GAAP	$	0.66	$	0.75	$	1.63	$	1.45

* Less than $0.5 million or $0.01 per share.

** Includes restructuring costs and business optimization initiative.

Management views adjusted (non-Generally Accepted Accounting Principles) earnings as a key measure of the Company's present operating financial performance and uses adjusted earnings for external communications with analysts and investors. Internally, the Company uses adjusted earnings to measure and assess performance. Adjustments could include items such as discontinued operations, asset sales, impairments, restructuring costs, business optimization initiative, changes in accounting principles, voluntary separation program, changes in federal tax policy, regulatory items from prior years, unrealized gains or losses from mark-to-market adjustments, or other items. The adjusted earnings should be considered supplemental information to assist in understanding our business results, rather than as a substitute for reported earnings.

SOURCE CMS Energy